Elizabeth Warren Echoes Labor Dept. Concerns About Fidelity’s Plan for Bitcoin in 401(k) Retirement Plans

U.S. Sen. Elizabeth Warren (D-Mass.) joined the Labor Department in expressing concerns about Fidelity Investment's plan to offer bitcoin (BTC) in its 401(k) retirement plans.

• In a joint letter with Sen. Tina Smith (D-Minn.), Warren asked Fidelity "about the appropriateness" of its plans.
• Echoing the the Labor Department's concerns about bitcoin's volatility, the two described investing in crypto as "a risky and speculative gamble."
• "We are concerned that Fidelity would take these risks with millions of Americans' retirement savings," they said.
• They asked Fidelity to say how it assesses risks of volatility, fraud, theft and the evolving regulatory environment and how it plans to address them.
• Warren has previously expressed skepticism about the crypto industry. In March, she introduced a bill to block cryptocurrency firms from conducting business with sanctioned companies. There is broad consensus in the blockchain industry that crypto is not used to work around sanctions.
• She has also questioned mining firms over their energy usage and is a proponent of the U.S. developing a central bank digital currency (CBDC), seen by some as a challenge and means of restricting private cryptocurrencies and stablecoins.

Read more: MicroStrategy to Offer Workers Bitcoin Options in 401(k) Accounts via Fidelity